Supreme Court: Dismissed Amnesty International’s Challenge Against ED Freezing Bank Accounts As Provisional Attachment Order Was Passed In Meantime

The Supreme Court in the case M/s Indians for Amnesty International Trust versus Union of India and others observed and has refused to entertain Amnesty International India’s petition challenging the Enforcement Directorate’s attachment of its bank accounts, in view of the facts that a provisional attachment order on October 7, 2022 was passed by the PMLA Adjudicating Authority.
The Court dismissed the Special Leave Petition, while reserving the rights of Amnesty to challenge the provisional attachment order.
The bench comprising of Chief Justice of India stated in the order stated that the rights of the petitioner are reserved to challenge the aforestated order dated 07.10.2022 in accordance with law and the dismissal of this Special Leave Petition shall not be taken to be a reflection on the merits or demerits of rival contentions.
It was observed that as per the order dated 07.10.2022 of the Adjudicating Authority, the three bank accounts of the Organisation having balance of Rs.1,54,03,992.30/- (Rupees One Crore Fifty-Four Lakhs Three Thousand Nine Hundred Ninety-Two Only) along with accrued interest was provisionally attached in terms of Section 5(1) of the PMLA Act. The stated order prohibited that removal, transfer or disposal of the amounts attached. However, this order of attachment will be effective for a period of 180 days and its further continuation will be subject to the confirmation order passed by the Authority.
The India wing of the International human rights organization filled the special leave petition against the orders of the Karnataka High Court.
On December 16, 2020, the single bench of the High Court had given a given partial relief to Amnesty India by allowing them to withdraw Rupees 60 lakhs to meet the expenses. The court aggrieved with the refusal of the single bench to go into the substantive points of challenge raised against the attachment order and the Amnesty approached the division bench. The division bench disposed of the appeal on 08.04.2021, wherein observing the grounds of challenge against the provisional attachment order are to be raised before the PMLA Adjudicating Authority.
The bench observed that the Amnesty India had stopped its operations in India following the attachment of its bank accounts.